Airbnb Laws from the Boardwalks and Beyond—What to Know Before You Host in New Jersey

Asbury Park, New Jersey Short-Term Rental Rules

Enacts New Airbnb Laws in Wake of Host Lawsuit

The City of Asbury Park voted in February of 2020 to enact a set of adjusted Airbnb laws after resident and host Jon Biondo filed a lawsuit against the city’s total ban on short-term rentals in 2017. The amended ordinance now outlines guidelines for short-term rental hosts. Here is what hosts need to keep in mind when renting. 

• A Short-term Rental Permit is required for all rentals renting for 30 days or less.  
• For each new guest, a Short-Term Rental Occupant Change Form must be submitted to the city. When you rent your property in the City, this basic identifying information is required so police, fire, emergency personnel and City Officials are aware of who is occupying the property at all times. Further, it is required to ensure that no overcrowding of the property is occurring. 
• An inspection once every twelve months 

For properties renting over 30 days—classified as a long-term rentals—the regulations differ. The full ordinance can be found on the City of Asbury Park website. 

Atlantic City, New Jersey STR Laws

New Airbnb Laws Hosts Need to Know

There’s been much debate over Airbnb Laws in America’s Playground resulting in new regulations last spring. Atlantic City now requires an annual application ($150.00) and a short-term rental license. More restrictions are being considered for short-term rentals operating under an LLC, Corp, or Partnership. 

Along with the current application, hosts like yourself must provide the following: 

• The name, address, email, and telephone number of the owner/operator of the subject short-term rental unit. 
• The name, address, email, and 24-hour telephone number of the local contact person (the local contact person is responsible for responding to complaints within the hour). 
• The name and address of the proposed short-term rental unit. 
• A rough sketch or technical drawing of the floorplan of proposed rental 

The City has also considered requiring hosts to provide proof of liability insurance in a minimum of $500,000. And while this requirement from the city for owners to hold insurance policies, it’s incredibly important that it’s the right kind of insurance. Commercial general liability is found in business insurance policies and protects the insured against claims of bodily injury or property damage they could be found legally liable. 

It doesn’t exclude business activity (common in a homeowner’s policy) and extends beyond the premise (i.e. dog bite off-premise). Unless excluded, it also provides personal and advertising injury. It’s ultimately the most comprehensive liability insurance one can purchase. 

Jersey City, New Jersey Airbnb Regulations

Understanding Jersey City’s Short-Term Rental Rules 

The regulations for short-term rentals in Jersey City are governed by the Jersey City Short-Term Rental Ordinance (Chapter 255), enforced by the Division of Housing Preservation. These rules were adopted after a 2019 voter referendum and outline licensing, eligibility, and operating standards for STRs.  

• Definition of Short-Term Rental: Hoboken defines short-term rentals as rentals of fewer than 30 consecutive days. 
• Licensing: Only property owners may apply for STR permits in Jersey City. Tenants cannot apply, and rental arbitrage is prohibited. A Jersey City Short-Term Rental Permit from the Division of Housing Preservation is required before operating or advertising an STR. Initial applications must include a Zoning Determination Letter (ZDL) from the Division of Zoning. STR permits must be renewed annually, and renewal applications require updated certifications if any property details have changed. 
• Zoning Restrictions: STRs are not allowed in rent-controlled units, income-restricted housing, or properties with outstanding code violations. STRs are also disallowed in properties with more than 10 units.  
• Hosting Limits: Unhosted rentals (where the owner is not present) are limited to 60 nights per calendar year. Rentals beyond this cap require the owner to be on-site during the stay. 
• Occupancy Limits: The ordinance specifies that STR occupancy cannot exceed two guests per bedroom plus two additional guests for the entire unit. This is a hard cap regardless of property size. 
• Guest Age Restrictions: STRs cannot be rented to persons under the age of 21. 
• Insurance: Hosts must provide proof of at least $500,000 of general liability insurance for short-term rentals when applying for a permit. 
• Taxes: Hoboken vacation rentals are subject to the state’s Sales Tax (6.625%), State Occupancy Fee (5%), and expanded its 3% Municipal Occupancy Tax to include short-term rentals booked through platforms like Airbnb and Vrbo. This tax is paid by guests as part of their reservation and remitted to the city. Hosts must register with the NJ Division of Taxation unless the booking platform collects and remits taxes. 
• Safety: Properties must comply with housing and building codes. Lead-based paint inspections are required for dwellings built before 1978 unless exempt under state law. Failure to comply can result in fines of up to $1,000 per week. 
• Parking: Guests must abide by the zoning-based parking regulations for off-street and unmarked parking spaces.  
• Local Contact Person: A responsible party must be designated and available 24/7 during rental periods to handle complaints and emergencies.  
• Neighbor Notification: Hosts must provide notice to adjacent property owners when applying for an STR permit. This includes the owner’s name and the designated responsible party’s contact information. 
• Fines & Penalties: Violations of the STR ordinance can result in fines of up to $2,000 per offense, and repeated violations may lead to permit revocation. 
• More Information: For details or to apply for a permit, visit the Jersey City Short-Term Rental Permit portal or contact the Division of Housing Preservation at 201-547-4821. 

Newark, New Jersey STR Laws

Learn About Newark’s Airbnb Rules

Newark does not currently publish a dedicated short-term rental ordinance. Instead, rental regulations are governed by the city’s Rental Property Registration Ordinance, enforced by the Department of Economic and Housing Development. Newark does not currently publish a dedicated short-term rental ordinance, so hosts must comply with general rental registration and housing safety requirements. 

• Definition of Short-Term Rental: Short-term rentals in New Jersey are generally defined under state law as stays of fewer than 30 consecutive days. Newark does not explicitly define STRs in its municipal code, but New Jersey tax law treats rentals of fewer than 90 days as transient accommodations. Hosts should confirm eligibility with Newark’s Department of Economic and Housing Development before listing a property. 
• Registration: All rental properties in Newark must be registered annually with the city. Registration includes submitting owner and emergency contact information and obtaining a Certificate of Habitability. This certificate is required before any rental activity and must be renewed if property details change. 
• Occupancy Limits: Newark follows its Housing Code (Title XVIII), stating that a bedroom must be at least 70 square feet for one occupant. For additional occupants, add 50 square feet per person. 
• Insurance: While Newark does not require proof of insurance for short-term rentals, hosts remain responsible for liability and property risks. Carrying a dedicated short-term rental policy can help protect against guest-related damages and claims. 
• Taxes: Short-term rentals in Newark are subject to New Jersey’s state taxes: Sales Tax (6.625%), State Occupancy Fee (5%), and any applicable Municipal Occupancy Tax (up to 3%), for a combined rate of up to 14.625%. Hosts must register with the NJ Division of Taxation unless the booking platform collects and remits taxes.  
• Safety & Smoke Alarms: Newark does not publish STR-specific operating rules, but all rental properties must comply with state housing codes, including lead paint compliance for pre-1978 dwellings. New Jersey law requires smoke alarms to be installed on each level of the dwelling, including the basement, and outside of each separate sleeping area in the immediate vicinity of bedrooms. Alarms may be placed on the ceiling or within 12 inches of the ceiling on the wall. 
• Inspections & Compliance: The city inspects each rental unit at least once every three years or upon a change in occupancy to ensure compliance with housing codes. Properties without a valid Certificate of Habitability cannot be rented. 
• More Information: For property registration and compliance details, visit the Newark Office of Compliance or contact the Department of Economic and Housing Development. 

Point Pleasant Beach, New Jersey STR Rules

New Airbnb Laws Passed

On Dec. 7th, 2021, the Point Pleasant Beach Borough Council in New Jersey voted and passed new Airbnb Laws after many residents complained of “party houses” in their communities. 

Current STR ordinances in Point Pleasant Beach combine and revise chapters 13 and 27 of Ordinance 2021-33 in hopes of better regulating rentals in the Borough of New Jersey, specifically including short-term transient rentals.

Updates to this ordinance include:  

13-14.2 Short-Term Rentals Prohibited: No dwelling, or segment thereof, may be rented or leased for a term of less than a month.  

13-14.3 Exceptions for Seasonal Short-Term Rental: Notwithstanding the restriction set forth above, minimum rentals of seven days or more of a dwelling unit are permitted during a period from May 15 through September 30.  

13-14.5 Exceptions for Owner Occupied: Notwithstanding the restrictions set forth above owner-occupied multi-unit dwellings shall have no durations restrictions if the owner personally resides in one of the units during the time of the tenancy.  

More regulations include denial of a certificate of occupancy to any owner with prior revocations or suspension of license, or with any violations of any borough ordinance, which began on January 1, 2022. 

Verify Your Short-Term Vacation Rental Insurance Today

Please note: The information provided is intended as a guide and may not be comprehensive or current. Regulations may change and could vary by area or situation. Always consult local authorities or a legal professional to ensure you have the most accurate information for your short-term rental property. Given that STR laws and regulations are always changing, we rely on our community to keep us informed. If you have any additional information or updates relating to our posts, let us know at info@proper.insure.